Former Rep. George Santos (R-NY) has settled an investigation into alleged unlawful trading concerning bets he placed on Kalshi, a prediction market platform. The settlement, announced Friday by the Commodity Futures Trading Commission (CFTC), includes a three-year trading ban and a $35,000 payment covering fines and profits derived from the wagers.
The CFTC found that Santos engaged in manipulative activity by placing bets on a Kalshi market that asked users to predict, "Who will attend the State of the Union?" According to the commission, Santos announced on social media that he would attend President Trump's address to Congress, but then placed a bet on Kalshi that he would not. He later allegedly announced he would not attend.
During the period he was buying and selling positions on the market, Santos posted on social media about his plans regarding attendance. The CFTC stated that these posts contained material misrepresentations and omissions about whether he would attend the State of the Union. Following these posts, the price of the contract moved favorably for Santos' positions, allowing him to profit over $17,500.
Joseph Murray, Santos' attorney, stated that the former congressman intended to attend the address but was prevented by weather-related travel delays. Murray added that Santos "logically adopted a no position" due to the travel issues and that this was his first time wagering on a prediction market. The lawyer asserted that Santos did not conceal his intentions or his change of plans, and that there was no intent to deceive or manipulate the market.
Santos agreed to the settlement to resolve the matter. His lawyer noted that Santos settled without admitting any of the commission's allegations, findings, or conclusions, emphasizing that the settlement is not an admission of wrongdoing.